The9 Loses China World Of Warcraft|wow gold

杰佛森

The9 Loses China World Of Warcraft|wow gold

The9 Loses China World Of Warcraft Deal to NetEase
Activision Blizzard has confirmed rumors yesterday that publisher wow gold wow gold NetEase will take over control of World of Warcraft in China.

The change is a major blow to former Chinese WoW wow gold wow gold operator The9. Blizzard's MMORPG has been the primary driver of the company's revenues.

The9's contract officially expires in June. The firm wow gold wow gold gained the rights to distribute and operate WoW in June 2005, and subsequently saw revenues double over the next year.

As recently as February this year, The9 has wow gold wow power leveling indicated that WoW "continued to enjoy high popularity and tremendous growth," maintaining a high peak concurrent users level of around 1 million.

Whisperings that distribution duties would change hands caused The9's shares to slide 22 percent yesterday.

According to Wedbush Morgan analyst Michael wow gold gold wow Pachter, the new contract with NetEase substantially increases Activision Blizzard's royalty rate on revenues from WoW in China.

He estimates that with The9, Activision Blizzard wow gold gold wow collected a 22 percent royalty rate that translates into $50-$55 million annually based on recent subscriber figures.

"Although the terms of the new arrangement were not disclosed, we estimate that the royalty rate will increase to at least 55%, and that the new arrangement will generate revenues of over $140 million annually," Pachter says.

Says Activision CEO Robert Kotick: "We believe this new relationship wow gold buy wow gold will promote a consistent level of quality and service in mainland China for each of the games that Blizzard Entertainment is partnering with NetEase on, including WarCraft III and StarCraft II, as announced last year."

"In addition, we believe this new relationship positions us well for the long-term, and despite the near-term impact of the transition, we are reaffirming our calendar 2009 financial outlook," he added.

The9 also operates the MMORPGs MU, Soul of the myyqqm1030 Ultimate Nation, Granado Espada and several other titles.







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